New Delhi: Due to the spread of the Corona epidemic in the country, the country’s debt-GDP ratio has reached a historical level. According to the report released by the International Monetary Fund (IMF), the country’s debt was 74 percent in the year 2020, which has risen to 90 percent in the Corona crisis. The total GDP of the country in the year 2020 was Rs 189 lakh crore. At the same time, the debt was around 170 lakh crore rupees.
According to the report released by the IMF, the country’s debt has increased, but due to the improvement and recovery in the economy at this time, this ratio can be reduced by about 10 percent. That is, soon this ratio will be 80 percent.
Paolo Morrow, deputy director of the IMF’s Department of Financial Affairs, said, ‘India’s debt ratio was 74% of GDP in 2019, before the Corona epidemic, but in 2020 it has come down to around 90% of GDP. . This increase is quite high, but the situation is the same for other emerging markets or advanced economies. Further, he said that our guess is that the way the economy of the country will improve. The country’s debt will also be reduced. With this, soon this loan will reach 80 percent.
Companies and people should be helped
Paolo Morrow said that in this crisis, we should help the companies and people of the country, so that they can further their work. This will also speed up the country’s economy. It is also important to reassure the general public and investors that the public finances will remain in control and will be done by a credible medium-term fiscal framework. Let us tell you that whatever is the total debt of the country, the debt of both the central government and the state government is the sum.
Explain that even in the policy meet, the RBI had given a GDP growth estimate of 10.5 per cent for the financial year 2022. Growth in the country has been hit heavily due to Kovid. The supply chain has been badly affected and the backbone of the small businessmen has been broken. In addition, the RBI has projected a 7.5–8 per cent contraction in GDP in FY 2021.
What is debt-GDP ratio?
The debt-GDP ratio or government debt ratio shows the ability of any country to repay its debt, the higher the debt-GDP ratio, the more difficulties a country has to face to repay its debt. If the debt-GDP ratio of a country increases, the probability of its default becoming higher.
